MCAF ( $13- $21) EPS- $0.53 3rd Qtr 2001 Revenues of $16.2 Million and Posts Pro Forma Earnings per Share of $0.06
siliconinvestor.com
Company Receives U.S. Patent for Delivering Internet Security as a Web Service
SUNNYVALE, Calif., Oct. 10 /PRNewswire/ -- McAfee.com (Nasdaq: MCAF - news), a leading provider of Web security services today announced operating results for the third quarter ended September 30, 2001.
Revenues for the third quarter of fiscal year 2001 were $16.2 million, up $3.6 million from the same period last year, representing year over year revenue growth of 29%. Quarterly revenues grew 13% sequentially over second quarter 2001 revenues of $14.4 million. Pro forma earnings per share for the quarter were $0.06, which excludes $1.5 million of non-cash charges related to amortization of intangibles and stock compensation. Earnings per share, including such non-cash charges were $0.03 for the quarter.
For the nine months ended September 30, 2001, revenues increased $8.7 million, representing 25% year over year revenue growth. Pro forma net earnings per share excluding non-cash charges related to the amortization of intangibles and stock compensation improved to $0.06 from a loss of $(0.34) per share over the same period last year. Net loss per share including such non-cash charges, was $(0.04) for the nine months ended September 30, 2001, compared with a loss of $(0.45) for the nine months ended September 30, 2000.
``This has been another record quarter for the company,'' said Srivats Sampath, president and CEO, McAfee.com. ``We executed extremely well on all aspects of the business and it reflects in our results.''
Third Quarter Highlights
Subscriber Momentum
-- Total unique paid subscribers surpassed 1,220,000 during the quarter.
New subscribers acquired during the period exceeded 200,000. The
Company also experienced a renewal rate of approximately 80% for its
premium services -- McAfee.com Clinic and Personal Firewall.
-- As of September 30, 2001, the Company had over 1,400,000 active paid
subscriptions to various McAfee.com services demonstrating a continued
push to sell more services into its current subscriber base.
-- McAfee.com for Business, which provides managed security services for
the SME market continues to gain traction with continued acquisition of
over 1,200 new customers.
New Services and Products
-- The Company launched McAfee Visual Trace to trace hacker attacks, spam
and Internet bottlenecks. McAfee Visual Trace is a graphical trace-
route utility that gives users the ability to trace the network path
from their computer to a target system anywhere on the Internet. This
new service combined with McAfee.com's Personal Firewall service, gives
Internet users the capability to trace, track and report online
threats.
-- McAfee.com also launched SecureIIS, a web security solution that
protects Microsoft IIS (Internet Information Server) web servers
against the Nimda, Code Red, and other Internet threats. SecureIIS
gives administrators a strong, regularly updated web security solution
that systematically analyzes incoming and outgoing web traffic and
monitors web server processes for possible security breaches. SecureIIS
helps web site administrators protect against and prevent loss of data,
server downtime and defacement of their web sites from viruses, trojans
and hackers.
Strategic Initiatives and Awards:
-- McAfee.com was granted U.S. Patent #6,266,774 for its technology
invention "Method and system for securing, managing or optimizing a
personal computer." The issuance of this patent relates to the
Company's "software-as-a-service" technology and subscription-based
business model for delivering security, maintenance, and optimization
services to Internet users worldwide.
-- McAfee.com entered the Japanese market, in July, with an alliance with
Sourcenext, a leading Japanese computer software developer and
publisher. Sourcenext will be the exclusive provider of Japanese
language versions of McAfee.com's anti-virus, personal firewall,
privacy and PC utilities applications to over 200 retail outlets in the
Japanese market. Sourcenext will also be delivering these services
online to its customer base.
Other Business News:
-- The Company appointed Atri Chatterjee as its new vice president of
worldwide marketing. Mr. Chatterjee was most recently a business and
marketing consultant to a variety of companies, including Kontiki,
which launched earlier this year. Prior to his consulting business, he
was Vice President of Marketing and on the founding executive team of
Responsys. Prior to Responsys, he spent four years at Netscape where he
held several senior marketing management positions including Director
of Server Marketing and Director of New Business Development.
Mr. Chatterjee has also held various marketing and engineering
positions at Clarify, Sun Microsystems and Go Corporation. He has a BS
and an MS in Computer Science from Washington State University and an
MBA from the Wharton School of Business.
-- McAfee.com donated $500,000 to several relief organizations in support
of the September 11, 2001 tragedy. Recipients include the New York
Firefighters 9-11 Disaster Relief Fund, The Widows & Children's Fund
C/O NY Uniformed Firefighters Association and other organizations
providing assistance to the families of the victims.
A conference call with Company management will be held today, Wednesday, October 10, 2001, at 2:00 p.m. Pacific time. Investors are encouraged to participate in the conference call to gain a more detailed understanding of current operational results, as well as general management guidance regarding expectations of future results. The call will be broadcast live mcafee.com , or you may call in to listen. The conference telephone number is 1-888-928-9122; pass code McAfee. |
